Binance has implemented KYC requirements for all sub-accounts created under the Link program, with non-compliant sub-accounts facing restrictions and eventual account suspension.
Binance has informed its users that all sub-accounts created under the Binance Link program must meet enhanced compliance standards. This includes non-trading subaccounts created solely for the purpose of depositing assets.
Starting March 20, 2024, Binance will apply restrictions to subaccounts that have not completed the necessary Know Your Customer (KYC) documentation. By May 20, 2024, sub-account holders who have not provided the required KYC information will have their accounts completely restricted, causing them to lose access to the Binance Link program’s services.
Exchange Link account holders, who are responsible for creating and managing sub-accounts, must ensure that their sub-accounts are fully integrated with the Link KYC module. In addition, they must provide any additional user information on behalf of their sub-account holders upon request. This may include details of the source of the money, the source of the assets and proof of address.
Binance only communicates directly with Exchange Link account holders and is not responsible for communicating with sub-account users. Therefore, it is crucial that account holders provide all necessary information to their sub-account users.
To comply with anti-money laundering (AML) regulations, Binance may require sub-account holders to complete a questionnaire for potential politically exposed persons (PEPs). The questionnaire contains questions about PEP status, profession/title, employer details and the relationship with a PEP.
Subaccounts with incomplete KYC information will face various restrictions on their trading activities. Spot trading will be restricted, meaning users will not be able to place new orders and existing spot orders will be cancelled. Futures trading will also be restricted, allowing users to reduce existing positions but not place new orders. Likewise, margin trading will be limited to reducing existing positions.
Restricted subaccounts cannot receive deposits, and lost deposits may take up to 45 days to be refunded. An administration fee of $200 or equivalent will be charged per appeal, regardless of the amount of the deposit. Binance advises all Exchange Link account holders to inform their sub-account users of these changes.
Binance emphasizes the importance of complying with these identity verification requirements to ensure a secure, transparent and user-friendly trading environment. Users are reminded to consider their investment decisions carefully and consult a financial advisor before making any investment.
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